INSURANCE Tips for Choosing a Franchise Policy.
Thinking about purchasing a franchise? Or do you already own a franchise but would like more options when it comes to insurance? Not only is insuring a franchise different from insuring other types of business entities, but there are special considerations when evaluating your options. Following are some things to think about when purchasing a franchise policy or renewing your existing coverage:
- Obtain a copy of the franchiser’s insurance requirements from the Uniform Franchise Offering Circular and fax or email the specifics to business oriented insurance agent or broker for a quote prior to your commitment. Comparing the insurance minimums recommended by the franchiser to additional suggestions of the professionals will determine which provides the best coverage for your particular circumstances. One of the benefits of working directly with an agent is the ability to purchase the exact type of coverage suited to your specific needs. Tour personal needs are not necessarily aligned with yours. Investigate and interrogate to protect you and your family.
- Although they may indicate that insurance is part of the franchise program you should be able to purchase insurance independently of the programmed packages of the franchiser. They are many view points to consider when buying a pre-packaged insurance program rather then one customized for you own financial needs. Obtain proof in writing of insurance in written confirmation making sure your the proper coverage, limits, deductibles and exclusions of the new policy are all in place prior to opening. Obtain insurance elsewhere will require you to annually notify and send proof of coverage to the franchiser and the landlord in a timely manner.
- Consider additional policies. Even if the franchise is fully insured, many business owners find additional liability protection to be an excellent investment. It provides an added layer of protection against risk of lawsuits and liability caused by third parties or employees. An important part of your financial planning portfolio to ensure that personal assets are safe and secure. Other important forms of insurance include flood, loss of business use and key man coverage to name a few. A good agent should be able to provide a list of options for insurance for YOU to decide in concert with the agent. Insurance is not a static product and should change growing with you as become more successful.